Spotlight

After a sharp weekly advance and a subdued Muhurat trading session, the market enters the new week facing a key test of momentum, with investors likely to weigh the scope for further gains against the prospect of near-term profit-taking. The immediate focus will be on whether underlying buying interest can sustain the recent advance, particularly against the backdrop of lingering global concerns surrounding the AI trade and ahead of Thursday’s CPI data, which could provide the next significant directional cue for domestic equities. 

Broader market resilience remains an important positive, while relatively stable crude oil prices, a firming rupee and the resumption of foreign portfolio inflows continue to underpin domestic market sentiment. WTI crude is hovering around $90 per barrel, easing concerns over sustained energy cost pressures that had intensified when prices breached the $110 mark.  

On the geopolitical front, US President Donald Trump has indicated that renewed military strikes against Iran are highly unlikely if ongoing negotiations make progress. However, he has maintained that military action remains an option if talks fail to deliver an agreement, keeping geopolitical uncertainty in focus. Despite these concerns, oil prices have remained relatively stable, with diplomatic developments continuing to influence energy-market sentiment.
 
Asian markets are trading on a mixed note, with Japan's Nikkei 225 gaining over 1%, while South Korea's KOSPI is trading lower by more than 0.50%, reflecting continued uncertainty across global markets.  

Technical View 

Nifty 50

Nifty 50 continues to trade decisively above its 20-day, 50-day, 100-day and 200-day EMAs, indicating a significant improvement in its overall technical structure and sustained bullish momentum. The immediate resistance is placed around 25,150–25,200, followed by the crucial 25,500 zone. A sustained breakout above these levels could extend the rally towards higher levels.
 
On the downside, 24,800 forms the immediate support zone, followed by 24,600. Holding above these levels will be important to sustain the prevailing upward momentum. However, given the sharp recent rally and elevated RSI, intermittent profit-booking and consolidation cannot be ruled out. Overall, the near-term outlook remains bullish, although the overbought conditions warrant some caution.

Bank Nifty

Bank Nifty is currently trading around 58,850, maintaining a positive technical structure. The immediate resistance is placed in the 59,200–59,400 zone, followed by the next hurdle at 59,500–59,600. The RSI stands around 72, indicating overbought conditions, while the MACD remains above its signal line, reinforcing the prevailing bullish momentum.
 
On the downside, 58,600–58,400 forms the immediate support zone, followed by the crucial 58,000 mark. Holding above the immediate support range will be essential to sustain the ongoing upward momentum, while a decisive break below it could trigger profit-booking towards lower support levels. Overall, the near-term outlook remains bullish.